Goodwin (LSE:GDWN) confirmed it is in advanced discussions over the potential sale of a substantial part of its Mechanical Engineering division, responding to press speculation on the matter.
The engineering and manufacturing group said the headline cash consideration could reach approximately £1.1 billion, subject to customary closing adjustments.
The unit under discussion includes Goodwin Steel Castings, Goodwin International, Noreva, Easat Group and Pumps.
The prospective buyer is funds advised by Cerberus Capital Management, L.P., which Goodwin described as an investor with significant relevant industry experience.
The update follows the strategic review Goodwin announced on 7 August, which first flagged the potential disposal.
Goodwin cautioned that discussions are ongoing and there is no certainty a transaction will be agreed, nor as to its eventual terms.
